RBI circular against crypto currencies challenged in Delhi High Court

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Picture Credit: Daily Express

Over the plea challenging the circular issued by RBI, the Delhi High Court has sought the response from the Centre, the RBI and the GST Council. The RBI circular – issued on April 6 – prohibited banks and financial institutions in dealing with any transactions involving crypto-currencies. It was Gujarat based company Kali Digital Ecosystem Pvt Ltd, which has submitted a plea at Delhi HC, challenging RBI circular. While submitting the plea, the company officials maintained that they had already invested a substantial amount in ‘Coin Recoil’ system.

In the plea submitted by the company, it is requested that entities, which were already in the service, should be given at least three months to cease their activity. Besides requesting the HC to quash the circular, the plea also sought to direct GST Council to frame appropriate regulations on crypto-currencies.